Not all plastic is bad plastic.  There are good reasons why consumers may chose to responsibly use credit cards.  Here are some things to keep in mind when using plastic.

Why Credit?
With millions of Americans in debt and credit card interest rates at unbelievably high levels, many financial experts advocate a complete ban on the use of consumer debt.  But if used responsibly, the use of credit can be beneficial in areas such as providing individuals with improved cash flow, leverage opportunities, opportunity to earn rewards, and a chance to establish or improve credit.

When should I open a new credit card?
Opening a new credit card should be rare.  While department stores may entice you to open a card to “Save 10% today on your total purchase” opening too many of these cards at one time will damage your credit.  Instead, only open a new card after you have done solid research as to the benefits it will provide.  For someone trying to establish their credit, opening a new card is essential. 

How to use credit cards responsibly
In general, you shouldn’t have more than one or two major credit cards. Those one to two major credit cards should be paid off in full and on time at the end of each month.  They should not accumulate a balance.  While you are using them responsibly, find a card which provides rewards you value such as cash back or travel points. 

New Credit Card Regulations
New regulations on the industry have also served to protect consumers and provide additional information on things such as the interest rate and payments.  Use these new tools to help ensure you are responsibly using your cards.